Economics 9708 · AS & A Level · 6.4

6.4 — practice question

In the diagram, curves D1D1 and SS show the demand for and supply of £ sterling in the foreign exchange market. What might lead the demand curve to move from D1D1 to D2D2?

  • Aan increase in UK interest rates
  • Ban increase in the price of US goods sold in the UK
  • Cthe removal of UK tariffs against US goods
  • Dthe development of US substitutes for UK goods

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